The boom in U.S. real estate caused by foreign investors is about to get bigger
Excerpt from this article:
The U.S. Capital Gains Tax on Sale
U.S. corporations may be liquidated upon the sale of the U.S. real estate asset and there will be a single tax on the gain earned by the liquidating U.S. corporation at only 21%, with no additional U.S. taxes. In addition to ensuring a single U.S. income tax at lower rates and no estate and gift taxes, there will be no exposure whatsoever to the U.S. ‘‘branch tax,’’ discussed below.
Furthermore, in those instances where a U.S. subsidiary of a foreign corporation may hold assets that have not appreciated, the same tax-free liquidation permitted to the foreign corporate holding company will be available. So long as a foreign corporate holding company (by virtue of liquidating its domestic subsidiary) is not receiving an appreciated asset, the liquidation will not result in taxation on the foreign corporation because there is no gain to be realized or recognized as a result of the domestic corporation’s liquidation.
